Financial Data and Key Metrics Changes - The company reported a net income of $211 million and EPS of $3.15, an increase of $1 million and $0.06 per share compared to the previous quarter [4] - Net interest income (NII) was $647 million, up $15 million, driven by higher average deposit balances and fixed-rate asset repricing [10] - The effective tax rate decreased to 14.5% from 18.5% in the previous quarter, influenced by a higher proportion of exempt income [16] Business Line Data and Key Metrics Changes - Loan growth was strong at $502 million for the quarter, with Banco Popular contributing $357 million and Popular Bank contributing $145 million, primarily in commercial and construction lending [10] - Non-interest income increased to $171 million, up $3 million from the previous quarter, driven by robust customer transaction activity [14] - Total operating expenses rose to $495 million, an increase of $3 million, primarily due to a non-cash goodwill impairment [15] Market Data and Key Metrics Changes - The unemployment rate in Puerto Rico remained low at 5.6%, with consumer spending showing resilience and a 5% increase in combined credit and debit card sales [5] - Mortgage balances at Banco Popular increased by $129 million, indicating strong home purchase activity [5] - The tourism sector benefited from significant events, contributing to increased economic activity [6][7] Company Strategy and Development Direction - The company aims to be the number one bank for customers by deepening relationships and enhancing digital solutions [7] - The strategic framework focuses on being simple and efficient, while also aiming for a sustainable 14% return on tangible common equity [8] - Ongoing investments in technology and digital capabilities are expected to drive future growth and improve customer experiences [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the economic trends in Puerto Rico, citing a backlog of federal disaster recovery funds and ongoing real estate projects [6] - The company remains focused on maintaining expense discipline and achieving sustainable returns above 12% [4][23] - Management noted that credit quality metrics were stable, excluding two isolated commercial loan issues [18][20] Other Important Information - The CET1 ratio was 15.8%, a decrease of 12 basis points due to loan growth [17] - The company declared a quarterly common stock dividend of $0.75 per share, an increase from the previous quarter [17] - The allowance for credit losses increased to $786 million, driven by two commercial exposures [21] Q&A Session Summary Question: On margin and asset yields - Management indicated that they expect net interest margin (NIM) to continue expanding despite potential rate cuts, supported by fixed asset repricing [30] Question: On loan yields and credit trends - Management noted that while new loan yields are expected to slow, they remain optimistic about consumer credit trends, particularly in Puerto Rico [33] Question: On large commercial loans and reserves - Management clarified that the large commercial loans in question are still current on payments, and the decision to classify them as non-accrual was based on deteriorating conditions [40] Question: On competition and underwriting standards - Management confirmed that they maintain rigorous underwriting standards despite increased competition in the market [78] Question: On future guidance and tax rates - Management provided clarity on the effective tax rate guidance for 2025, indicating it would be a clean number without significant noise from discrete events [71]

Financial Data and Key Metrics Changes - The company reported net income of $211 million and EPS of $3.15, an increase of $1 million and $0.06 per share respectively, driven by higher revenues and expanding net interest margin [2][3][11] - Net interest income increased by $15 million to $647 million, with net interest margin expanding by two basis points on a GAAP basis [11][12] - Total operating expenses were $495 million, an increase of $3 million compared to the previous quarter, primarily due to a non-cash goodwill impairment [16][17] Business Line Data and Key Metrics Changes - Loan growth was strong, with an increase of $502 million in total loans, driven by commercial and construction lending across both banks [12][13] - Non-interest income was $171 million, an increase of $3 million compared to Q2, benefiting from robust customer transaction activity [15][16] Market Data and Key Metrics Changes - The unemployment rate in Puerto Rico remained low at 5.6%, with solid business activity reflected in consumer spending and tourism [4][5] - Combined credit and debit card sales for Banco Popular customers increased by approximately 5% compared to 2024 [5] Company Strategy and Development Direction - The company’s strategic framework focuses on being the number one bank for customers, simplifying operations, and achieving top performance with a long-term goal of a 14% return on capital [8][9] - Recent initiatives include expanding digital capabilities and modernizing branches to enhance customer engagement [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the economic trends in Puerto Rico, citing strong consumer spending and a healthy construction sector [5][6] - The company aims to maintain sustainable returns above 12% for the year and is focused on deposit retention and loan generation [26][27] Other Important Information - The effective tax rate for Q3 was 14.5%, down from 18.5% in Q2, influenced by a higher proportion of exempt income [18][19] - The company declared a quarterly common stock dividend of $0.75 per share, an increase of $0.05 from Q2, and repurchased approximately $119 million in shares during Q3 [20] Q&A Session Summary Question: Margin and Asset Yields - Management indicated that they expect net interest margin to continue expanding despite potential rate cuts, supported by fixed asset repricing and loan growth [31][32] Question: Credit Trends - Management remains optimistic about consumer credit trends, noting that delinquency rates are still lower year-over-year [35] Question: Large C&I Loan Reserves - Management clarified that the loans in question are current on payments, and the decision to classify them as non-accrual was due to deteriorating business conditions [38][39] Question: Competition and Underwriting Standards - Management confirmed that there has been no relaxation in underwriting standards despite increased competition, emphasizing a conservative approach [80][81]

Financial Data and Key Metrics Changes - The company reported a net income of $211 million and EPS of $3.15, an increase of $1 million and $0.06 per share, respectively, driven by higher revenues and an expanding net interest margin [4][10] - Net interest income increased by $15 million to $647 million, with a net interest margin expansion of two basis points on a gap basis [11][12] - The effective tax rate decreased to 14.5% from 18.5% in the previous quarter, influenced by a higher proportion of exempt income [17][61] Business Line Data and Key Metrics Changes - Loan growth was strong at $502 million, with contributions from both banks, primarily in commercial and construction lending [11][12] - Non-interest income was $171 million, an increase of $3 million compared to the previous quarter, driven by robust customer transaction activity [15] - Total operating expenses increased by $3 million to $495 million, primarily due to a non-cash goodwill impairment [16] Market Data and Key Metrics Changes - The unemployment rate in Puerto Rico remained low at 5.6%, with consumer spending resilient and healthy [5][6] - Combined credit and debit card sales for Banco Popular customers increased by approximately 5% compared to the third quarter of 2024 [5] - The construction sector showed solid momentum, supported by public and private investments [6] Company Strategy and Development Direction - The company’s strategy focuses on being the number one bank for customers, simplifying operations, and achieving a sustainable 14% return on tangible common equity [7][9] - Recent initiatives include expanding digital capabilities and modernizing branches to enhance customer engagement [9][10] - The company is committed to improving cash management and credit delivery for small and mid-sized businesses [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the economic trends in Puerto Rico, citing a backlog of federal disaster recovery funds and new development projects [6][23] - The company aims to close out 2025 on a high note, focusing on deposit retention and loan generation [23] - Management remains confident in the risk profile of the loan portfolios despite recent credit quality concerns related to two large commercial loans [20][40] Other Important Information - The CET1 ratio decreased to 15.8%, primarily due to loan growth and capital actions [18] - The company declared a quarterly common stock dividend of $0.75 per share, an increase from the previous quarter [18] Q&A Session Summary Question: Margin and Asset Yields - Management indicated that they expect net interest margin (NIM) to continue expanding despite potential rate cuts, supported by fixed asset repricing and loan growth [26][27] Question: Credit Trends - Management noted that the increase in delinquency rates is within seasonal variations, and they remain optimistic about the consumer credit outlook [30][31] Question: Large CNI Loan Reserves - The company clarified that the large commercial loan remains current on payments, and the decision to classify it as non-accrual was due to deteriorating circumstances [34][35] Question: Competition in Deposits - Management acknowledged increased competition in the market but emphasized their commitment to rational pricing and maintaining strong client relationships [63][64] Question: Future Guidance on ROCI - Management confirmed that the target of a sustainable 14% ROCI is a guiding principle, with ongoing efforts to improve net income performance [57][59]

Financial Data and Key Metrics Changes - The company's top line income increased by 11% to £7.2 billion from £6.5 billion in the same quarter last year [3] - Tangible net asset value per share (TNAV) rose to £3.92 compared to £3.84 in the previous quarter [3] - Return on tangible equity (ROTE) for Q3 was 10.6%, with a year-to-date ROTE of 12.3% [3] - The guidance for 2025 ROTE has been upgraded to greater than 11% [3] Business Line Data and Key Metrics Changes - Group net interest income (NII) increased by 16% year-on-year to £3.3 billion [9] - The Investment Bank's ROTE improved by 1.3 percentage points year-on-year to 10.1% [6] - The US Consumer Bank's ROTE increased by 2.6 percentage points year-on-year to 13.5% [6] Market Data and Key Metrics Changes - UK lending momentum has strengthened, contributing to the increase in NII [9] - The UK corporate bank saw lending grow by 17% year-on-year, with more than half of this growth from new clients acquired since 2024 [16] - The US Consumer Bank's end net receivables grew by 10% year-on-year, with NIM rising to 11.5% [24] Company Strategy and Development Direction - The company is focused on simplifying its businesses and generating higher returns, with plans to announce new targets for 2028 alongside full-year results for 2025 [5] - A £500 million share buyback has been announced, reflecting strong capital generation and disciplined execution of capital priorities [4] - The company aims to achieve a cost-income ratio of circa 61% for 2025, despite additional provisions for motor finance [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational progress and the potential for further improvements in returns [7] - The outlook for stable income is strong, supported by UK lending momentum and operational progress in the US Consumer Bank [4] - Management acknowledged the uncertain environment but emphasized the foundation for future growth and targets [7] Other Important Information - The group achieved £500 million in gross efficiency savings one quarter earlier than planned, with a target of £2 billion by the end of 2026 [6] - The group loan loss rate was 57 basis points, with expectations to remain within the through-the-cycle guidance of 50 to 60 basis points for FY2025 [14] Q&A Session Questions and Answers Question: On the U.S. Consumer top line and non-interest income - Management confirmed that the strong growth in the U.S. Consumer Bank is sustainable, driven by operational actions and an increase in retail deposits [34][35] Question: On UK mortgages and competitive pressures - Management noted that the UK mortgage market is robust, with strong refinancing activity, but acknowledged potential churn compression due to maturing loans from the stamp duty holiday [38] Question: On competitive conditions in U.S. investment banking - Management indicated confidence in their market position and ability to compete effectively, despite potential changes in capital regulation [42][43] Question: On private credit and risk management - Management emphasized strong credit controls and risk management practices in the private credit space, welcoming regulatory reviews [61][62]

Financial Data and Key Metrics Changes - The company's top line income increased by 11% to GBP 7.2 billion from GBP 6.5 billion year-on-year [3] - Tangible net asset value per share (TNAV) rose to GBP 3.92 from GBP 3.84 in the previous quarter [3] - Return on tangible equity (ROTE) for Q3 was 10.6%, with a year-to-date ROTE of 12.3% [3] - The guidance for 2025 ROTE has been upgraded to greater than 11% [3] Business Line Data and Key Metrics Changes - Group net interest income (NII) increased by 16% year-on-year to GBP 3.3 billion [9] - The Investment Bank's ROTE improved by 1.3 percentage points year-on-year to 10.1% [6] - The US Consumer Bank's ROTE increased by 2.6 percentage points year-on-year to 13.5% [6] Market Data and Key Metrics Changes - UK corporate bank lending grew by 17% year-on-year, with a significant portion coming from new clients [16] - In mortgages, net lending of GBP 3.1 billion was achieved, the highest since 2021 [15] - The US Consumer Bank's end net receivables grew by 10% year-on-year [23] Company Strategy and Development Direction - The company is focused on simplifying its businesses and generating higher returns, with plans to share new targets through to 2028 [5] - A GBP 500 million share buyback was announced, reflecting strong capital generation and disciplined execution of capital priorities [4] - The company aims to return at least GBP 10 billion of capital over its three-year plan [4] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational progress and the ability to navigate an uncertain environment [7] - The outlook for stable income is strong, supported by UK lending momentum and operational progress in the US Consumer Bank [4] - The company expects to achieve a circa 61% cost-income ratio for 2025 despite additional provisions [5] Other Important Information - The group cost-income ratio was 63% in Q3, with total costs increasing by around GBP 500 million year-on-year [11] - The group impairment charge for Q3 was GBP 632 million, equating to a loan loss rate of 57 basis points [13] - The CET1 capital ratio stood at 14.1%, with a pro forma ratio of 13.9% after the announced buyback [26] Q&A Session Summary Question: On the U.S. Consumer top line and non-interest income - Management confirmed that the strong growth in the U.S. Consumer Bank is sustainable, driven by operational actions and an increase in retail deposits [33][35] Question: On U.K. mortgages and competitive pressures - Management noted that the U.K. mortgage market is robust, with strong refinancing activity, and highlighted the competitive landscape [32][36] Question: On competitive conditions in U.S. investment banking - Management acknowledged the potential for additional capital deployment in the U.S. but emphasized their strong market position and product capability [39][41] Question: On private credit and risk management - Management discussed the importance of strong credit controls and the need for careful monitoring of portfolios in the private credit space [42][60] Question: On U.K. RWA deployment and mortgage headwinds - Management clarified that RWA growth is aligned with lending performance and acknowledged potential headwinds from maturing mortgages written during the stamp duty holiday [64][65] Question: On future targets for 2027-2028 - Management indicated that updated targets will be provided in February, focusing on ROTE and capital allocation [69][70]

Financial Data and Key Metrics Changes - The top line income increased by 11% to GBP 7.2 billion from GBP 6.5 billion in the same quarter last year [2][3] - Tangible net asset value per share (TNAV) rose to 392p compared to 384p in the previous quarter [3] - Return on Tangible Equity (RoTE) for Q3 was 10.6%, with a year-to-date RoTE of 12.3% [3][11] - Group net interest income (NII) increased by 16% year on year to GBP 3.3 billion [12] - The cost-income ratio was 63% in Q3, with total costs increasing by 14% year on year [15] Business Line Data and Key Metrics Changes - All divisions generated double-digit RoTE, with the Investment Bank's RoTE improving by 1.3 percentage points to 10.1% [7][29] - The U.S. Consumer Bank's RoTE increased by 2.6 percentage points to 13.5% [7][35] - UK Corporate Bank lending grew by 17% year on year, with a 24% increase in NII [26] - Private Bank and Wealth Management RoTE was 26.4%, with client assets growing by 10% year on year [27] Market Data and Key Metrics Changes - UK mortgage net lending reached GBP 3.1 billion, the highest since 2021 [21] - The UK Corporate Bank's market share increased by 70 basis points to 9.3% [26] - The U.S. Consumer Bank's end net receivables grew by 10% year on year [33] Company Strategy and Development Direction - The company plans to announce quarterly buybacks, reflecting consistent capital generation [5] - A target to return at least GBP 10 billion of capital over the three-year plan was reiterated [5] - The company aims to achieve a cost-income ratio of around 61% for 2025 and high 50s for 2026 [15] - The focus remains on operational improvements and higher returns across divisions [6][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of income growth driven by operational actions [48] - The outlook for stable income is strong, with expectations for group NII to exceed GBP 12.6 billion for FY 2025 [3][12] - The company is well-positioned to navigate the uncertain environment and achieve its targets through 2028 [9] Other Important Information - A share buyback of GBP 500 million was announced, reflecting strong capital generation [4][38] - The CET1 capital ratio stood at 14.1%, with RWAs increasing by GBP 4.3 billion quarter on quarter [37][39] - The company has simplified its business structure and rebalanced its footprint to generate higher returns [5][8] Q&A Session Summary Question: U.S. Consumer top line performance and non-interest income - Management confirmed that the strong performance is driven by operational actions and expects NIM to remain around 11.5% [48][50] - Non-interest income growth is supported by increased volumes and improved partner sharing agreements [50] Question: UK Mortgages volume and competitive pressures - The UK mortgage market is robust, with strong refinancing activity, but some churn compression is expected due to maturing loans [52][53] Question: Competitive conditions in U.S. investment banking - Management expressed confidence in their market position and ability to compete effectively despite potential regulatory changes [58] Question: Risks in private credit and NBFI - Management emphasized strong risk management practices and continuous monitoring of credit performance [60][63] Question: UK RWA deployment and mortgage headwinds - Management indicated that RWA growth is aligned with lending performance and expects some margin compression due to maturing loans [90][92]

Financial Data and Key Metrics Changes - In Q3 2025, Barclays reported a top line income increase of 11% to £7.2 billion from £6.5 billion in the same quarter last year [2] - The tangible net asset value per share (TNAV) rose to £3.92 compared to £3.84 in the previous quarter [2] - The return on tangible equity (ROTE) for Q3 was 10.6%, with a year-to-date ROTE of 12.3% [2] - The group net interest income (NII) is now expected to exceed £12.6 billion for FY25, up from previous expectations of more than £12.5 billion [3] Business Line Data and Key Metrics Changes - The Investment Bank's ROTE improved by 1.3 percentage points year-on-year to 10.1% [5] - The US Consumer Bank's ROTE increased by 2.6 percentage points to 13.5%, reflecting operational progress [5] - Group NII increased by 16% year-on-year to £3.3 billion, driven by UK lending momentum and operational progress in the US Consumer Bank [9] Market Data and Key Metrics Changes - UK corporate bank lending grew by 17% year-on-year, with more than half of this growth coming from new clients acquired since 2024 [16] - In mortgages, net lending of £3.1 billion was achieved, the highest since 2021 [14] - The US Consumer Bank's end net receivables grew by 10% year-on-year, with NIM rising to 11.5% [24] Company Strategy and Development Direction - Barclays is focused on simplifying its businesses and generating higher returns, with plans to announce new targets through to 2028 [4] - The company aims to deliver operational improvements across divisions, targeting a cost-income ratio of circa 61% for 2025 [4] - A £500 million share buyback was announced, reflecting strong capital generation and disciplined execution of capital priorities [3] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of income growth, driven by operational actions and stable deposits [34] - The outlook for the UK mortgage market remains robust, with expectations of continued strong lending [36] - Management acknowledged potential headwinds from maturing mortgages written during the stamp duty holiday, but overall expects product margin impacts to be neutral [66] Other Important Information - The CET1 capital ratio stood at 14.1%, with a pro forma ratio of 13.9% post buyback [26] - The group cost-income ratio was reported at 63% in Q3, with total costs increasing by 14% year-on-year [11] - The company is committed to returning at least £10 billion of capital over its three-year plan [3] Q&A Session Summary Question: On the U.S. Consumer top line and non-interest income - Management confirmed that the strong growth in the U.S. Consumer Bank is sustainable, driven by operational actions and increased retail deposits [34] Question: On UK mortgages and competitive pressures - Management noted that the UK mortgage market is robust, with strong refinancing activity, but acknowledged potential churn compression as older mortgages mature [36] Question: On competitive conditions in U.S. investment banking - Management highlighted strong market share and the ability to compete effectively, subject to capital rules [42] Question: On risks in the private credit industry - Management emphasized the importance of careful credit selection and monitoring, welcoming regulatory reviews [44] Question: On the U.S. Consumer Bank's ROTE target for 2026 - Management reiterated the commitment to achieving greater than 12% ROTE, with expectations for mid-teens returns in the future [50] Question: On stablecoins and their impact on the banking system - Management acknowledged the potential implications of stablecoins on deposits and monetary policy, emphasizing the need for careful study [51] Question: On private credit economics and growth - Management described strong risk management practices in private credit and expressed confidence in the growth of the business [60] Question: On UK RWA deployment and mortgage headwinds - Management clarified that RWA growth is aligned with lending performance and acknowledged potential margin compression from maturing mortgages [66]

Financial Performance - Barclays Group achieved a Statutory RoTE of 106% in Q3 2025 and 123% Year-to-Date (YTD)[6,7] - The Group's income for Q3 2025 was £72 billion, a 9% increase year-over-year (YoY)[6,13] - Group Net Interest Income (NII), excluding Investment Bank and Head Office, reached £33 billion in Q3 2025[18] - The cost-to-income ratio for Q3 2025 was 63%, with a FY25 guidance of approximately 61%[6,26] - Loan Loss Rate (LLR) for Q3 2025 was 57bps, maintaining the through-the-cycle guidance of 50-60bps[6,30] Capital and Payout - The CET1 ratio stood at 141%[6] - Total payout to shareholders reached £05 billion in Q3 2025 and £19 billion YTD[3] - Barclays is targeting at least £10 billion in capital return to shareholders between 2024 and 2026[3] Business Segment Performance - Barclays UK delivered a RoTE of 218% in Q3 2025[5,46] - UK Corporate Bank achieved a RoTE of 228% in Q3 2025[5,54] - Private Bank & Wealth Management reported a RoTE of 264% in Q3 2025[5,58] - Investment Bank recorded a RoTE of 101% in Q3 2025[5,62] - US Consumer Bank (USCB) achieved a RoTE of 135% in Q3 2025[5,70]

Financial Data and Key Metrics Changes - The company reported earnings per share of $0.91, or $0.93 excluding certain items, with adjusted revenues rising 6% year over year to $2.3 billion, the highest since 2022 [4][12] - Net interest income (NII) grew 7% year over year and 2% sequentially, with net interest margin expanding for the seventh consecutive quarter [12][14] - Adjusted return on assets (ROA) was 1.25%, return on tangible common equity (ROTCE) was 17.7%, and efficiency ratio was 54.1% [5][12] - Tangible book value per share increased 7% year over year and 3% sequentially [5][12] Business Line Data and Key Metrics Changes - Average loans increased 6% year over year, with commercial non-performing assets declining 14% [5][20] - Wealth management fees rose 11% year over year, and assets under management reached $77 billion [8][19] - Middle market loans increased 6%, with new client acquisition up 40% [8][15] - Commercial payments fees grew 3% sequentially, with New Line revenue increasing by 31% year over year [8][19] Market Data and Key Metrics Changes - Average demand deposits were up 3% year over year, led by 6% growth in consumer demand deposit accounts (DDA) [4][17] - Consumer household growth in the Southeast was 7% year over year, significantly outpacing the underlying market growth [6][17] - The total cost of retail deposits in the Southeast averaged 1.93%, generating a spread of over 200 basis points relative to Fed funds [6][18] Company Strategy and Development Direction - The company announced a merger with Comerica, emphasizing that M&A is a means to achieve strategic objectives rather than a standalone strategy [3][4] - Focus on expanding in the Southeast and enhancing middle market sales force, with plans to open 27 more branches by year-end [6][11] - Continued investment in technology and operational efficiency to support long-term growth and scalability [10][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating uncertain environments, highlighting strong operational results despite challenges [3][12] - The outlook for NII is stable to up 1% from the third quarter, with expectations for average total loan balances to increase by 1% [24][23] - Management remains optimistic about the potential for growth in technology and life sciences sectors post-merger with Comerica [50][51] Other Important Information - The company repurchased $300 million of stock and raised its common dividend by 8% [5] - The net charge-off ratio was 109 basis points for the quarter, including $178 million related to Tricolor [20][22] - The company expects to pause share repurchases until the completion of the Comerica acquisition, anticipated by the end of Q1 2026 [24] Q&A Session Summary Question: Update on the Comerica transaction and regulatory process - Management reported positive feedback from employees and communities regarding the merger, with good progress on regulatory filings expected to be completed by the end of the month [31][32] Question: Concerns about contagion risk in the NDFI portfolio - The company maintains low levels of NDFI concentrations, with robust monitoring processes in place, and has not experienced losses in this portfolio over the last decade [38][40] Question: Outlook on commercial lending and investment decisions - Management noted a mixed outlook, with some clients feeling the impact of tariffs while others are optimistic about future investments, particularly in infrastructure and AI-related sectors [45][48] Question: Potential growth from Comerica's technology and life sciences practice - The merger is expected to enhance growth opportunities in these sectors, leveraging existing strengths and expanding market presence [50][51] Question: Balance between organic expansion and integration of Comerica - Management assured that de novo expansion plans in the Southeast will continue without disruption, with resources allocated effectively to support both growth areas [54][56]

Financial Data and Key Metrics Changes - The company reported net income of $1.8 billion, or $4.35 per share, reflecting strong performance [4] - Total revenue reached a record $5.9 billion, up $254 million, or 4% from the previous quarter [12] - Non-interest income was $2.3 billion, increasing by $161 million, or 8% [15] - The net interest margin (NIM) was 2.79%, a decline of one basis point [14] - The tangible book value per common share increased to $107.84, up 4% linked quarter and 11% year-over-year [8] Business Line Data and Key Metrics Changes - In retail banking, consumer demand deposit accounts (DDAs) grew 2% year-over-year, with a notable 6% growth in the Southwest [5] - Commercial loans increased by $3.4 billion, or 2%, driven by growth in the commercial and industrial (C&I) portfolio [9] - Non-interest income in the corporate and institutional banking (C&IB) segment reached record levels, driven by broad-based performance across fee income categories [7] Market Data and Key Metrics Changes - Average deposits increased by $9 billion, or 2%, during the quarter, with strong growth in commercial interest-bearing deposits [11] - Non-interest-bearing deposits remained stable at $93 billion, representing 21% of total deposits [11] - The company anticipates a decline in the rate paid on deposits in the fourth quarter due to expected Fed rate cuts [12] Company Strategy and Development Direction - The company is focused on organic growth, particularly in new markets, and plans to complete over 200 branch builds by the end of 2029 [6] - The recent acquisition of FirstBank is expected to enhance the company's market share in retail deposits and branches in Colorado [7] - The company aims to reduce costs by $350 million in 2025 through a continuous improvement program [17] Management's Comments on Operating Environment and Future Outlook - Management expects real GDP growth to be below 2% in 2025, with unemployment peaking above 4.5% in mid-2026 [18] - Despite potential economic risks, management remains optimistic about customer spending and corporate clients' outlook [5][18] - The company anticipates stable to slightly increased average loans in the fourth quarter, with net interest income expected to rise approximately 1.5% [18] Other Important Information - The company returned $1 billion of capital to shareholders during the quarter, including $679 million in common dividends and $331 million in share repurchases [9] - Credit quality remains strong, with a net charge-off ratio of only 22 basis points [4][17] Q&A Session Summary Question: Margin performance and outlook - Management explained that the decline in NIM was due to outsized growth in commercial interest-bearing deposits, which affected the weighted average [22][23] Question: Expense expectations for the fourth quarter - Management noted that expenses are expected to rise due to seasonal factors and increased business activity, with a revised full-year expense growth expectation of 1.5% [25][28] Question: Scale and growth opportunities - Management emphasized the importance of organic growth and the strategic acquisition of FirstBank to enhance retail dominance [35][36] Question: Commercial real estate loan runoff - Management expects the decline in commercial real estate balances to inflect positively at the beginning of next year [37] Question: Capital levels and rating agency perspectives - Management indicated that the current CET1 ratio is 10.6%, and they are assessing capital levels in light of recent developments with rating agencies [58][59] Question: Loan demand and credit quality outlook - Management expressed confidence in loan growth prospects, citing strong pipelines and positive credit quality indicators [64][66] Question: Regulatory environment and potential cost savings - Management discussed the potential benefits of regulatory simplification and the impact on operational efficiency [105][106]